Target's Q3 Revenue Up 1.1% to $25.7B

By Bobby Samwell • Wednesday, November 27 15:16 • Permanent Link

Target Corporation recently released its 10-Q report, providing a detailed overview of its financial performance for the third quarter of 2024. During this period, the company reported total revenue of $25.7 billion, marking a 1.1% increase from the comparable prior-year period. Notably, comparable sales increased by 0.3%, driven by a 2.4% increase in traffic. However, operating income of $1.2 billion was 11.2% lower than the comparable prior-year period.

The company's GAAP and adjusted diluted earnings per share (Adjusted EPS) were reported at $1.85, a decrease of 11.9% from the previous year. Over the nine months ended November 2, 2024, the company's GAAP and Adjusted EPS was $6.45, an increase of 8.3% from the same period in the prior year.

Target's after-tax return on invested capital (ROIC) for the trailing twelve months ended November 2, 2024, was 15.9%, compared with 13.9% for the trailing twelve months ended October 28, 2023. The company also reported a gross margin rate of 27.2% for the third quarter of 2024, compared with 27.4% in the comparable prior-year period.

Sales by channel revealed that stores originated 81.5% of sales, while digitally originated sales accounted for 18.5%. Notably, digitally originated comparable sales increased by 10.8% over the same period.

The company's net interest expense for the three and nine months ended November 2, 2024, was $105 million and $321 million, respectively, compared with $107 million and $395 million in the comparable prior-year periods. The effective income tax rates for the three and nine months ended November 2, 2024, were 21.7% and 22.5%, respectively, compared with 21.3% and 21.5% in the comparable prior-year periods.

In terms of capital allocation, Target follows a disciplined and balanced approach based on priorities, including investing in the business, maintaining its current dividend, and returning excess cash to shareholders through share repurchases. The market has reacted to these announcements by moving the company's shares 3.1% to a price of $130.46. For the full picture, make sure to review Target's 10-Q report.

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